Semoweb Sold / Acquired?!?!

jcaleb

New Member
i am not expert in business and i am surprised when a profitable business is sold.  Like the company I work for.  It is 200 yrs old but recently bought by a 10 yr old company.
 

rds100

New Member
Verified Provider
@jcaleb why are you surprised? The owners get some millions $$$ (or whatever the amount is), then retire and go to live on some carribean island.

Many companies / startup are created with the sole idea to be sold later.
 

concerto49

New Member
Verified Provider
Check who is dropping prices around 50% all of a sudden. Maybe companies giving 1GB or 2GB in 20 dollars give or take, yearly plans.


I have 1 suspect....
But the one you are suspecting is owned by a way larger company that isn't likely to sell. That company also has many rumored shell companies.
 

drmike

100% Tier-1 Gogent
my suspect is a smaller host... not very old
Based on what Root Level is doing and pace they are doing it at, I am pretty certain they already have other low end companies they've bought and the ink on the contract is drying.

Expect another flurry of 2-3 companies under their umbrella in next 45 days.
 

jcaleb

New Member
Based on what Root Level is doing and pace they are doing it at, I am pretty certain they already have other low end companies they've bought and the ink on the contract is drying.
specially to those who have history of selling
 

Francisco

Company Lube
Verified Provider
@jcaleb why are you surprised? The owners get some millions $$$ (or whatever the amount is), then retire and go to live on some carribean island.

Many companies / startup are created with the sole idea to be sold later.
When Rus Foster used to feast on the budget market there was many brands that built with the sole purpose of selling out to him. HazeNET and a whole ton of them that he bought were all like that. They got a little bit of cash from sales, pushed stupid cheap deals for a few months then sold to Rus and made a few grand for being a 'sales rep'.

Once Rus left the picture I figured urpad was going to try to fill the gap but I think @Chris Miller stopped himself.

Francisco
 
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prometeus

New Member
Verified Provider
When Rus Foster used to feast on the budget market there was many brands that built with the sole purpose of selling out to him. HazeNET and a whole ton of them that he bought were all like that. They got a little bit of cash from sales, pushed stupid cheap deals for a few months then sold to Rus and made a few grand for being a 'sales rep'.
I don't know the US market enough but I don't see how new small companies with one or a few thousands of clients with a low ARPU can be bought for large amount of money.

What is the value of a client ? 
 

XFS_Brad

New Member
Verified Provider
I have talked to the Former Owner of SemoWeb asking him What made him sell, and why. Unfortunately he is unable to tell me anything about the sale due to an NDA that was involved during the acquisition of Semoweb. I'm not sure if we will ever know anything about this, other than was has been made available on Root Level Technologies' Site.

I think it should known to the public. I also do have services with SemoWeb and I never received any notification that this was taking place or that it had been done. But, I figure as long as my services stay online and the customer service stays the same, I really don't care.
 

drmike

100% Tier-1 Gogent
Unfortunately he is unable to tell me anything about the sale due to an NDA that was involved during the acquisition of Semoweb.
I've never heard of such heavy handed legalese being tolerated.  Sends signal to me that they are acquiring companies that are struggling to exist and that have/had minimal income.

The rest of the business world would have their lawyers jumping all over the legal stuff and making them stuff those sorts of mouth shut mandates.

I don't agree with Root's strategy to this point.   It seems to be silent about the acquisitions and just run them as-is with existing customers.   There doesn't seem to be any outreach, brand building, etc.   

Compare all that to their WHT ad looking to buy companies:

06-10-2013, 12:11 PM
RBurns
Aspiring Evangelist

Join Date: Sep 2010
Location: Houston, TX
Posts: 422

Have you ever thought about selling your company?
Have you ever considered selling your company? Every day I speak with several company owners who have never considered selling their companies until the discussion. At Root Level Technology we have three priorities, Great customer support, Excellent Products, and treating every customer like family. There are plenty of people out there who claim that they will purchase your company and make it something even better, and I assure you unlike 99% of other companies, we fulfill our promises. Root Level Technology believes in running transparent operations, there is no smoke and mirrors like several of the other companies.

Root Level Technology is in more than 20+ locations World wide, 4 Continents, and is proud to host more than 20,000 members. Based in Houston, Texas we have a firm belief that every customer is important and should be treated like family.

Currently our price range that we are looking to acquire business' is between $15,000-$10,000,000. We would love to earn your trust and speak with you. I personally invite you to call me any time to speak about your company. If you'd like you can even come down and meet with our team in person and go to lunch.

I look forward to speaking with you and feel free to email me: Randal (A) root level tech.com or contact us through our website www.RootLevelTech.com.

__________________
Randal Burns
RootLevelTechnology, LLC, Randal @ RootLevelTech.com
Actively searching for new brands to acquire!
 

XFS_Brad

New Member
Verified Provider
I don't agree with Root's strategy to this point.   It seems to be silent about the acquisitions and just run them as-is with existing customers.   There doesn't seem to be any outreach, brand building, etc.   
I Agree, as it they are trying to be sort of 'stealthy' in "acquiring" Brands/Companies. I do not agree with no reaching out the customers to inform them of the sale, as I think customers should be one of the 1st to know. But I guess we will see how far they get.
 

rds100

New Member
Verified Provider
If the old company (Semoweb whatever) doesn't caese to exist and the customers are still served by that company - then there is not much reason to announce the sale. After all some companies are publicly traded and shares can change hands every day - would you expect announcements for these too?

On the other hand if the old company is closed, customers migrated to a new company - yes, in this case the customers must know about it, preferrably in advance.
 
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Reece-DM

New Member
Verified Provider
I took at look at Rootlevel tech and Rburns on WHT.

He used to run CheetahHost.net which appears to of had shutdown/be sold who knows.

However since being a member on WHT he's posted many investment offers and also requested many over the years at the same time.

Odd bit is, Cheetahhost vanishes and straight after it looks like he's running ServerSavior -- Maybe someone got a huge sale? Or finally found that investment he wanted.

it is also noted there were similar sites to CheetahHost back then so it wouldn't surprise if they were much smaller operations he were involved in.

Any actuall link between the companies brought? Just curious = )
 
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